Latest news with #FairAccesstoInsuranceRequirementsPlan
Yahoo
28-02-2025
- Politics
- Yahoo
NM Gov fire-insurance proposal ‘won't happen this session'
Gov. Michelle Lujan Grisham gestures during her State of the State address on Tuesday, Jan. 21, 2025. Her proposal described in the speech for a state-sponsored fire insurance program won't happen this session, a spokesperson said. (Danielle Prokop / Source NM) After announcing a proposal to create a state-sponsored fire insurance program in her State of the State address a month ago, Gov. Michelle Lujan Grisham will instead commission a study on the idea because her office failed to find a sponsor, according to a spokesperson for her office. Citing the wildfires in Los Angeles and ones here in New Mexico, the governor dedicated part of her speech to announce the creation of a state-run fire insurance program separate from the private market. 'Fires spurred by climate change have also ravaged communities in our state, testing our patience and resilience as we struggle under the weight of natural disasters in our backyards,' Lujan Grisham said in her speech. 'As if the fires themselves aren't difficult enough, getting insurance protection is becoming impossible, either because it's simply no longer available or exorbitantly expensive.' The program would also be separate from the Fair Access to Insurance Requirements Plan, governor's spokesperson Michael Coleman said after the speech, which was created by the Legislature in 1969 to serve as an insurer of last resort primarily in fire-prone areas. The governor's program would be structured similar to the state's workers' compensation fund, requiring initial state funding and 'limited liability' to the state, with the ultimate goal of providing coverage to anyone who needs it, Coleman said. But the governor's office could not find a sponsor for the legislation, Coleman told Source New Mexico on Thursday afternoon. Instead, the governor will commission a study on the issue, a spokesperson said. 'The governor will keep pursuing this idea, but it won't happen this session,' Coleman said in an email. Several bills making progress this session aim to spur mitigation of fire-prone communities and homes, and revamp the FAIR plan. Senate Bill 81, which the state Office of the Superintendent of Insurance endorses, would increase coverage limits from $350,000 to $1 million for homes and also change the makeup of the FAIR plan board, which is now made up of insurance industry leaders, to include a climate scientist, a consumer advocate, a catastrophic risk management expert and others. Since 2022, average premiums have increased 60% across the state, the OSI chief actuary recently testified, and insurers are increasingly canceling policies or refusing to renew them. The increases come as wildfires in New Mexico are occurring with more frequency and ferocity, including the state's biggest-ever wildfire in 2022 and the most destructive, in terms of structures destroyed, last summer.
The Hill
27-01-2025
- Business
- The Hill
California considers letting wildfire victims sue oil companies for damages
SACRAMENTO, Calif. (AP) — Oil and gas companies would be liable for damages caused by climate change -related disasters in California under legislation introduced Monday by two Democratic lawmakers. The proposal, introduced by two Democratic lawmakers, claims that the oil industry intentionally deceived the public about the risks of fossil fuels on climate change that now have intensified storms and wildfires and caused billions of dollars in damage in California. Such disasters have also driven the state insurance market to a crisis where companies are raising rates, limiting coverage or pulling out completely from regions susceptible to wildfires and other natural disasters, supporters of the bill said. Under state law, utility companies are liable for damages if their equipment starts a wildfire. The same idea should apply to oil and gas companies, said Robert Herrell, executive director of the Consumer Federation of California, 'for their massive contribution to these fires driven by climate change.' The bill aims to alleviate the financial burdens on victims of such disasters and insurance companies by allowing them to sue the oil industry to recoup their losses. It would also allow the Fair Access to Insurance Requirements Plan, created by the state as a last resort for homeowners who couldn't find insurance, to do the same so it doesn't become insolvent. If approved, California would be the first state in the U.S. to allow for such lawsuits, according to the author. 'We are all paying for these disasters, but there is one stakeholder that is not paying: the fossil fuel industry, which makes the product that is fueling the climate change,' state Sen. Scott Wiener, who authored the bill, said at a Monday news conference. The new measure is bound to face major backlash from oil and gas companies, who have faced a string of defeats in California in recent years as the country's most populous state started to shift policy priorities to address climate change. The Western States Petroleum Association, representing oil and gas companies in five states, already signaled it will fight the bill. President and CEO Catherine Reheis-Boyd said state lawmakers are using the LA fires to 'scapegoat' the industry. 'We need real solutions to help victims in the wake of this tragedy, not theatrics,' Reheis-Boyd said in a statement. 'Voters are tired of this approach.' Supporters said the measure will also help stabilize the state's insurance market by allowing insurers to recover some of the costs after a natural disaster from oil companies, which will prevent increased rates from being passed onto policyholders. The bill is supported by several environmental and consumer protection groups. The legislation comes as California begins the long recovery process from multiple deadly fires that ripped through sections of Los Angeles and burned more than 12,000 structures earlier this month. The fires were named the most destructive in the modern history of the city of Los Angeles and estimated to be the costliest natural disasters in U.S. history. Lawmakers last week voted to spend $2.5 billion to help the area rebuild. Dozens of U.S. municipalities as well as eight states and Washington, D.C., have sued oil and gas companies in recent years over their role in climate change, according to the Center for Climate Integrity. Those suits are still making their way through the courts, including one filed by California more than a year ago against some of the world's largest oil and gas companies, claiming they deceived the public about the risks of fossil fuels. Scientists overwhelmingly agree the world needs to drastically cut the burning of coal, oil and gas to limit global warming. That's because when fossil fuels are burned, carbon dioxide forms and is released, which accounts for over three quarters of all human-caused greenhouse gases. California is also working to persuade insurers to continue doing business in the state by giving insurers more latitude to raise premiums in exchange for more issuing policies in high-risk areas. Citing ballooning risks of climate-driven natural disasters, seven of the top 12 insurance companies doing business in California in 2023 either paused or restricted new business in the state. The state now allows insurers to consider climate change when setting their prices and will soon also allow them pass on the costs of reinsurance to California consumers.
The Independent
27-01-2025
- Business
- The Independent
California considers letting wildfire victims sue oil companies for damages
Oil and gas companies would be liable for damages caused by climate change -related disasters in California under legislation introduced Monday by two Democratic lawmakers. The proposal, introduced by two Democratic lawmakers, claims that the oil industry intentionally deceived the public about the risks of fossil fuels on climate change that now have intensified storms and wildfires and caused billions of dollars in damage in California. Such disasters have also driven the state insurance market to a crisis where companies are raising rates, limiting coverage or pulling out completely from regions susceptible to wildfires and other natural disasters, supporters of the bill said. Under state law, utility companies are liable for damages if their equipment starts a wildfire. The same idea should apply to oil and gas companies, said Robert Herrell, executive director of the Consumer Federation of California, 'for their massive contribution to these fires driven by climate change.' The bill aims to alleviate the financial burdens on victims of such disasters and insurance companies by allowing them to sue the oil industry to recoup their losses. It would also allow the Fair Access to Insurance Requirements Plan, created by the state as a last resort for homeowners who couldn't find insurance, to do the same so it doesn't become insolvent. If approved, California would be the first state in the U.S. to allow for such lawsuits, according to the author. "We are all paying for these disasters, but there is one stakeholder that is not paying: the fossil fuel industry, which makes the product that is fueling the climate change,' state Sen. Scott Wiener, who authored the bill, said at a Monday news conference. The new measure is bound to face major backlash from oil and gas companies, who have faced a string of defeats in California in recent years as the country's most populous state started to shift policy priorities to address climate change. The Western States Petroleum Association, representing oil and gas companies in five states, already signaled it will fight the bill. President and CEO Catherine Reheis-Boyd said state lawmakers are using the LA fires to 'scapegoat' the industry. 'We need real solutions to help victims in the wake of this tragedy, not theatrics,' Reheis-Boyd said in a statement. 'Voters are tired of this approach.' Supporters said the measure will also help stabilize the state's insurance market by allowing insurers to recover some of the costs after a natural disaster from oil companies, which will prevent increased rates from being passed onto policyholders. The bill is supported by several environmental and consumer protection groups. The legislation comes as California begins the long recovery process from multiple deadly fires that ripped through sections of Los Angeles and burned more than 12,000 structures earlier this month. The fires were named the most destructive in the modern history of the city of Los Angeles and estimated to be the costliest natural disasters in U.S. history. Lawmakers last week voted to spend $2.5 billion to help the area rebuild. Dozens of U.S. municipalities as well as eight states and Washington, D.C., have sued oil and gas companies in recent years over their role in climate change, according to the Center for Climate Integrity. Those suits are still making their way through the courts, including one filed by California more than a year ago against some of the world's largest oil and gas companies, claiming they deceived the public about the risks of fossil fuels. Scientists overwhelmingly agree the world needs to drastically cut the burning of coal, oil and gas to limit global warming. That's because when fossil fuels are burned, carbon dioxide forms and is released, which accounts for over three quarters of all human-caused greenhouse gases. California is also working to persuade insurers to continue doing business in the state by giving insurers more latitude to raise premiums in exchange for more issuing policies in high-risk areas. Citing ballooning risks of climate-driven natural disasters, seven of the top 12 insurance companies doing business in California in 2023 either paused or restricted new business in the state. The state now allows insurers to consider climate change when setting their prices and will soon also allow them pass on the costs of reinsurance to California consumers.
Yahoo
27-01-2025
- Business
- Yahoo
California considers letting wildfire victims sue oil companies for damages
SACRAMENTO, Calif. (AP) — Oil and gas companies would be liable for damages caused by climate change -related disasters in California under legislation introduced Monday by two Democratic lawmakers. The proposal, introduced by two Democratic lawmakers, claims that the oil industry intentionally deceived the public about the risks of fossil fuels on climate change that now have intensified storms and wildfires and caused billions of dollars in damage in California. Such disasters have also driven the state insurance market to a crisis where companies are raising rates, limiting coverage or pulling out completely from regions susceptible to wildfires and other natural disasters, supporters of the bill said. Under state law, utility companies are liable for damages if their equipment starts a wildfire. The same idea should apply to oil and gas companies, said Robert Herrell, executive director of the Consumer Federation of California, 'for their massive contribution to these fires driven by climate change.' The bill aims to alleviate the financial burdens on victims of such disasters and insurance companies by allowing them to sue the oil industry to recoup their losses. It would also allow the Fair Access to Insurance Requirements Plan, created by the state as a last resort for homeowners who couldn't find insurance, to do the same so it doesn't become insolvent. If approved, California would be the first state in the U.S. to allow for such lawsuits, according to the author. "We are all paying for these disasters, but there is one stakeholder that is not paying: the fossil fuel industry, which makes the product that is fueling the climate change,' state Sen. Scott Wiener, who authored the bill, said at a Monday news conference. The new measure is bound to face major backlash from oil and gas companies, who have faced a string of defeats in California in recent years as the country's most populous state started to shift policy priorities to address climate change. The Western States Petroleum Association, representing oil and gas companies in five states, already signaled it will fight the bill. President and CEO Catherine Reheis-Boyd said state lawmakers are using the LA fires to 'scapegoat' the industry. 'We need real solutions to help victims in the wake of this tragedy, not theatrics,' Reheis-Boyd said in a statement. 'Voters are tired of this approach.' Supporters said the measure will also help stabilize the state's insurance market by allowing insurers to recover some of the costs after a natural disaster from oil companies, which will prevent increased rates from being passed onto policyholders. The bill is supported by several environmental and consumer protection groups. The legislation comes as California begins the long recovery process from multiple deadly fires that ripped through sections of Los Angeles and burned more than 12,000 structures earlier this month. The fires were named the most destructive in the modern history of the city of Los Angeles and estimated to be the costliest natural disasters in U.S. history. Lawmakers last week voted to spend $2.5 billion to help the area rebuild. Dozens of U.S. municipalities as well as eight states and Washington, D.C., have sued oil and gas companies in recent years over their role in climate change, according to the Center for Climate Integrity. Those suits are still making their way through the courts, including one filed by California more than a year ago against some of the world's largest oil and gas companies, claiming they deceived the public about the risks of fossil fuels. Scientists overwhelmingly agree the world needs to drastically cut the burning of coal, oil and gas to limit global warming. That's because when fossil fuels are burned, carbon dioxide forms and is released, which accounts for over three quarters of all human-caused greenhouse gases. California is also working to persuade insurers to continue doing business in the state by giving insurers more latitude to raise premiums in exchange for more issuing policies in high-risk areas. Citing ballooning risks of climate-driven natural disasters, seven of the top 12 insurance companies doing business in California in 2023 either paused or restricted new business in the state. The state now allows insurers to consider climate change when setting their prices and will soon also allow them pass on the costs of reinsurance to California consumers. Trân Nguyễn (), The Associated Press
Associated Press
27-01-2025
- Business
- Associated Press
California considers letting wildfire victims sue oil companies for damages
SACRAMENTO, Calif. (AP) — Oil and gas companies would be liable for damages caused by climate change -related disasters in California under legislation introduced Monday by two Democratic lawmakers. The proposal, introduced by two Democratic lawmakers, claims that the oil industry intentionally deceived the public about the risks of fossil fuels on climate change that now have intensified storms and wildfires and caused billions of dollars in damage in California. Such disasters have also driven the state insurance market to a crisis where companies are raising rates, limiting coverage or pulling out completely from regions susceptible to wildfires and other natural disasters, supporters of the bill said. Under state law, utility companies are liable for damages if their equipment starts a wildfire. The same idea should apply to oil and gas companies, said Robert Herrell, executive director of the Consumer Federation of California, 'for their massive contribution to these fires driven by climate change.' The bill aims to alleviate the financial burdens on victims of such disasters and insurance companies by allowing them to sue the oil industry to recoup their losses. It would also allow the Fair Access to Insurance Requirements Plan, created by the state as a last resort for homeowners who couldn't find insurance, to do the same so it doesn't become insolvent. If approved, California would be the first state in the U.S. to allow for such lawsuits, according to the author. 'We are all paying for these disasters, but there is one stakeholder that is not paying: the fossil fuel industry, which makes the product that is fueling the climate change,' state Sen. Scott Wiener, who authored the bill, said at a Monday news conference. The new measure is bound to face major backlash from oil and gas companies, who have faced a string of defeats in California in recent years as the country's most populous state started to shift policy priorities to address climate change. The Western States Petroleum Association, representing oil and gas companies in five states, already signaled it will fight the bill. President and CEO Catherine Reheis-Boyd said state lawmakers are using the LA fires to 'scapegoat' the industry. 'We need real solutions to help victims in the wake of this tragedy, not theatrics,' Reheis-Boyd said in a statement. 'Voters are tired of this approach.' Supporters said the measure will also help stabilize the state's insurance market by allowing insurers to recover some of the costs after a natural disaster from oil companies, which will prevent increased rates from being passed onto policyholders. The bill is supported by several environmental and consumer protection groups. The legislation comes as California begins the long recovery process from multiple deadly fires that ripped through sections of Los Angeles and burned more than 12,000 structures earlier this month. The fires were named the most destructive in the modern history of the city of Los Angeles and estimated to be the costliest natural disasters in U.S. history. Lawmakers last week voted to spend $2.5 billion to help the area rebuild. Dozens of U.S. municipalities as well as eight states and Washington, D.C., have sued oil and gas companies in recent years over their role in climate change, according to the Center for Climate Integrity. Those suits are still making their way through the courts, including one filed by California more than a year ago against some of the world's largest oil and gas companies, claiming they deceived the public about the risks of fossil fuels. Scientists overwhelmingly agree the world needs to drastically cut the burning of coal, oil and gas to limit global warming. That's because when fossil fuels are burned, carbon dioxide forms and is released, which accounts for over three quarters of all human-caused greenhouse gases. California is also working to persuade insurers to continue doing business in the state by giving insurers more latitude to raise premiums in exchange for more issuing policies in high-risk areas. Citing ballooning risks of climate-driven natural disasters, seven of the top 12 insurance companies doing business in California in 2023 either paused or restricted new business in the state. The state now allows insurers to consider climate change
